Heretofore, magnetic binder compositions have had high processing viscosities, high specific gravities and contain halogens, especially chlorine, which are undesirable with regard to environmental aspects. For example, chlorosulfonated polyethylene and polyepichlorohydrin have been utilized as binders to achieve high loadings of magnetic particles but are undesirable due to their high specific gravity and high chlorine content. Chlorosulfonated polyethylene is further undesirable inasmuch as during the preparation thereof chloroform and carbon tetrachloride are utilized as solvents.